Remortgage demand still remains low in the midst of some of the cheapest interest rates ever offered by lenders. Historical lows kept being pushed farther and farther down, bit by bit as lenders competed for the attention of borrowers. It was expected that homeowners would rush to the doors of the lenders to secure one of the best interest rate deals, but demand has failed to rise in response to the attractive offers.

Part of the reasoning could be that homeowners are expecting the low interest rate deals to stay around for a while. That could be an error on their part and an opportunity to secure a great interest rate with a long fixed term will be lost. Demand for mortgage lending is expected to pick up after the election. With rising demand, lenders will lose their competitive need and will begin to adjust their interest rates on both new purchase mortgages and remortgages.

There are a great number of homeowners that have had their current mortgage deal end and have been moved to their lender’s standard variable rate (SVR). While the interest rates associated with those are currently low they are risky. Lenders can push up their SVR with little to no notice and mortgage holders are then pushed to accept the new rate until they can get a new deal. It could catch them off guard and put financial hardship on them until a remortgage is secured.

Low interest rates, some of the lowest ever seen, are currently associated with remortgages and homeowners should be aware that it will not last forever.